One of the reasons behind the cryptocurrecny projects is to convince investors into storing their tokens for the future. long term investments. thereby holding the tokens and avoid trading. currently, trading platforms are engaging into trading competitions apparently to promote their platform and also the tokens as well. Are their no effects of these to the community and the project developers?
Because they make money from trading fee's and they need volume in order to look higher in the exchange lists whereas they would not loss anything from it. It means there are three reasons for them to do this, lets take a look at them one by one, first of all they do make money from the trading fees and when hundreds of people trade in order to win the competition the exchange make a ton of money from the fee structure.
Secondly, they are known because of their volume, any exchange that is 108th or something on the volume list is in danger of closing the shop and leaving, which means they do not really make a lot of money and when they are at top 10 that means they are getting bigger and bigger, so trading volume increasing not only makes money for them but also puts their name out there.
Compared to all of this positives, they only give out one gift and that probably costs less than the trading fee's they made so third of all they do not lose anything because of it.